UK’s Financial Conduct Authority (FCA) has confirmed that European Union (EU) rules will continue to apply to financial firms in the UK despite Britain’s vote to quit the EU.
The rules will continue to apply till there is further clarity on future relations with the bloc, the financial regulator said.
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FCA CEO Andrew Bailey said: “As a starting point I would emphasise that the UK remains a member of the EU until such time as things change, and so all of our rules continue to apply whether they originate from the EU or not.
“Likewise, we will continue to implement EU legislation until the future is clear, something that is again a legal requirement.”
Soon after the EU referendum, the watchdog had raised concerns that Brexit would have significant implications for the country's financial regulation.
Bailey also welcomed the government’s statement that Britain would seek access to the single market in coming trade negotiations.
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By GlobalData“We will support the Government’s work to put in place new arrangements, and I would include in that, alongside access to the Single Market, seeking to have in place trade agreements with other countries,” Bailey said.
Bailey said that the regulator is now working on a mission that can answer the hard questions that underpin financial conduct regulation.
“Work has begun to put together a proposal on the FCA’s mission which I hope we will be able to publish in the early autumn, to be followed by a period of intensive public consultation," Bailey continued.
